KARACHI, Dec 19: The KSE 100-share index on Thursday maintained its upward drive boosted by fresh heavy buying in PTCL and Hub-Power on the perception of higher dividend yield as compared to return in fixed income groups. It ended with an extended gain of 34.32 points at 2,535.44.
It consolidated itself above the crucial index level of 2,500 points as the local financial institutions and the foreign funds continued to build-up long positions in both the market leaders amid hectic trading.
It gained another 34.32 points to close well above the vulnerable level and technically ensured that the journey above this level is now pretty safe backed, of course, by the prevailing buying euphoria.
At one stage, it rose to 2,572.23, indicating that it may breach through the barrier of 2,600 index level but at this level bargain-hunters moved in and pushed it down to the closing level.
The single-session traded volume swelled to its third career-best level after two years at 505m, the previous highs having been touched at 536m and 560m shares in March 2000 and indications are that new record may be established. The current lower levels of most of the blue chips still warrant a lot of capital appreciation.
Stock analysts said funds from the fixed income groups seems to have flooded the market. “Too many a rupee are chasing too few a stock and the consequent price flare-up.”
“The theory of relativity seems to be losing its relevance viewed in the backdrop of the current buying flurry on selected counters”, stock analysts at the KASB & Co said commenting on the market’s current meteoric rise.
“The two per cent cut in the coupon rates of Pakistan Investment Bonds may not have made the dividend-yielding stocks more attractive than the fixed investment group baits but the prevailing boom-like conditions have made them look so”.
But the situation is fraught with high risks as the stock business has more financial risks in its fold as compared to the fixed group as there are no windfall, some others claim.
The market is, therefore, emitting bullish sparks as massive liquid cash are flowing in almost from all the quarters to realize quick gains, they added.
Plus signs dominated the list of actives, major gainers being Tri-Pack Films, Souvenir Tobacco, Wyeth Pakistan, Clariant Pakistan and Unilever Pakistan, up by Rs2.60 to Rs32. They were followed by Quality Textiles, Al-Abid Silk, Pakistan Refinery, Century Insurance, Dawood Hercules, Engro Chemical and Transpak Corporation, which rose by Rs1.50 to Rs2.60.
Losers were led by Mitchell’s Farm Fruits, Kohinoor Weaving, Adamjee Insurance, Sarhad Cigarette and IGI Insurance, Faisal Spinning and Ideal Spinning, off Rs1.60 to Rs4.
Trading volume soared to a record level of 505.132m shares as gainers maintained a strong lead over the losers at 210 to 108, with 63 shares holding on to the last levels.
Hub-Power again topped the list of most actives on strong foreign and local buying, touching the day’s peak level of Rs34.20 but later selling pushed it down to close lower by 15 paisa at Rs33.25 on 138m shares followed by PTCL, sharply higher by Rs1.15 at 24.25 on 115m shares, Sui Northern Gas, higher by Rs1.10 at Rs22.45 on 74m shares, PSO, higher by Rs1.35 at Rs189.80 on 29m shares and Engro Chemical, up by Rs1.60 at Rs79.70 on 21m shares.
Other actives were led by FFC-Jordan Fertilizer, unchanged on 17m shares, National Bank, easy 10 paisa also on 17m shares, ICI Pakistan, up by 35 paisa on 12m shares, Fauji Fertilizer, firm by 15 paisa on 7m shares and Nishat Mills, lower 30 paisa also on 7m shares.
FORWARD COUNTER: PTCL was massively traded for the second session in a row and rose sharply by Rs1.85 at Rs24.25on 66m shares followed by Hub-Power, unchanged at Rs33.40 on 38m shares.
Sui Northern Gas was marked up by Rs1.10 at Rs22.55 on 8m shares, while Engro Chemical was traded lower by 15 paisa at Rs79.95 on 5m shares. Others were also actively traded mostly on the higher side.
DEFAULTER COMPANIES: Shares of about two dozen companies came in for active support and generally rose under the lead of Quice Foods, which rose by five paisa at Rs1.70 on 60,500 shares followed by Service Fabrics, up by 10 paisa at Rs0.60 on 45,000 shares.
Other actives were led by Medi Glass, up by 20 paisa at Re1 on 29,000 shares followed by Pangrio Sugar, up by 20 paisa at Rs1.50 on 28,000 shares.
DIVIDEND: Burewala Textiles, cash 40 per cent for the year ended Sept 30, 2002.